Every property I sell has lessons to be learned and a Honolulu town home KU Realty just closed on Friday had a few. The property in question was a 3-bedroom 2.5 bathrooms, 1,179 square foot town home in Hawaii Kai development of Nanea Kai. The unit was clean and in original condition and backed up to Hawaii Kai Drive near a busier intersection. Here are a four lessons.
1. Good interest and activity may not lead to sale. The listing was originally priced at $549,950 and at this price the home had regular and consistent showings, however, there were not any offers. KU Realty tracked the activity closely and after a number of weeks with lots of showings, but no offers, I recommended a reduction in price. Here is the lesson, after your property has received numerous showings and no offers, it may be time to reduce the price.
2. One price reduction may not be enough. Again, my firm tracked showing interest very closely and the owner agreed to a total of four (4) price reductions. When the price was reduced to $499,000 interest increased dramatically and we received a cash offer for $480,000. The seller countered at $495,000 and the buyer accepted the counter offer. Two lessons from this part of the sale:
a. A seller must be willing to reduce the price more when they are not getting written offers.
b. There are certain price points that will get a property to a new set of buyers, in this case the price was $500,000 or less. By positioning a property at or below a significant price point, you get to buyers that may not have seen the home. Many times the buyer will be in this new market pool.
3. Once condo or home is at the right price it will sell very close to that price. Again, when the price was reduced to $499,000, interest spiked and the property sold for 99.2% of the asking price. Here is the lesson; a property will sell very close to its fair market value. Many times sellers are fearful that if they price at the market price for a property they will sell for a much lower price. Buyers, mind you, will always try to get a lower price, but if you have someone like me negotiating for you, I can work to negotiate the price closer to our list price.
4. Properties that back-up to busy or noisy streets will sell for less those comparable homes that back to quiet, less-busy streets. As a professional Honolulu Realtor, I believe his home would have sold for $525,000 to $550,00, but because of the busy road it backed up to the owner received 5 to 10% less than one in a better location. The lesson? When buying home try to stay a way from houses or condos that are near significant roads. When it is time for you to sell, you should expect the noise and traffic to significantly reduce the price you can sell it for.
If you would like to discuss the best pricing strategy for your Honolulu home or condo, feel free to contact me. You can .
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As I worked on developing my new company, KU Realty, people advising me asked me to pay special attention to the meaning of the word Ku. I am sure that many of you are wondering, how does Ku fit into Ku Realty.